Property experts hope Noonan keeps momentum

Property experts hope Noonan keeps momentum

Irish property and construction experts are hoping that Minister for Finance,

Michael Noonan will produce some surprises next week which will sustain the momentum already achieved by the property market this year.

While many agents and investors hope the Minister may also stretch the Capital Gains Tax (CGT) waiver past its December 31 deadline, most industry experts recognize that such an extension is unlikely as the EU expects the Government to honour its budget commitments., the best that might be expected in this respect is that the Minister might ease back on the rate of CGT which he himself increased to a hefty 33%.Another hoped for measure is that the Limerick minister might extend the Living City tax relief for refurbishment of Georgian properties to other cities in addition to Limerick and Waterford.

Such an extension has been requested by a number of organisations including the Society of Chartered Surveyors Ireland (SCSI), the Construction Industry Federation and the Institute of Professional Auctioneers and Valuers who expect it would help refurbish and restore heritage properties in Dublin, Cork, Galway and especially those places whose business activities have been pulled out of their centres.

However the minister might prefer to see his constituency retain its head start with this incentive. The scheme has not yet been implemented as the Government has to apply to the EU for approval for the scheme and it is expected to apply shortly after it has finalised a cost benefit analysis of the scheme.

While there has been some recent pick-up in sales and lettings of Georgian buildings on Dublin’s sought after city squares, demand and values for Georgian properties in other parts of Dublin has suffered more than other property types due to the implementation this year of the new standards for Pre 63 properties.

Hence the City Living scheme would be embraced by Dublin Georgian owners and families willing to take on these refurbishment projects as well as by builders looking for business.

However this urban renewal incentive is much more restrictive than the widespread urban renewal that was available during the Celtic Tiger and it is aimed mainly at owner occupiers and to a smaller extent at retailers who undertake refurbishment work in city centre areas.